Maersk Group to splits into two, moves top executives

Danish oil and shipping conglomerate A.P. Moller-Maersk said on
Thursday it would split the group into separate businesses for transport and
energy as it faces headwinds in both sectors.

“The industries in which we are operating are very different, and
both face very different underlying fundamentals and competitive environments,”
chairman Michael Pram Rasmussen said in a statement.

“Separating our transport and logistics businesses and our oil and
oil-related businesses into two independent divisions will enable both to focus
on their respective markets,” he added.

The group said that its “main growth focus” going forward would be
in “world class transportation and logistics services.”

Oil and oil-related businesses would “require different solutions
for future development including separation of entities individually or in
combination… in the form of joint ventures, mergers or listing,” it said.

The company’s objective was to find a solution within 24 months,
it said.

Maersk also said that the head of Maersk Drilling, Claus
Hemmingsen, would become chief executive of the energy division, while group
chief financial officer Trond Westlie would be replaced by Jakob Stausholm, who
currently heads up strategy at Maersk Line.

The new CEO of APM Terminals will be Morten Engelstoft, currently
CEO of APM Shipping Services and CEO of Maersk Tankers. Morten Engelstoft’s
appointment is effective November 1, 2016.

“Morten Engelstoft has a strong track record of delivering
results, deep operational experience and is an excellent people leader. I am
confident that APM Terminals under Morten’s leadership will continue to thrive
as one of the world’s largest terminal operators and successfully execute on
APM Terminals’ priorities of costs, productivity and winning new profitable
third party business,” says Søren Skou, Group CEO of A.P. Møller – Mærsk A/S.

Kim Fejfer, currently CEO of APM Terminals and Executive Board
member in the Maersk Group will take up a new role related to A.P. Møller
Holding A/S.

The new CEO of Maersk Oil will be Gretchen Watkins, current Chief
Operating Officer in Maersk Oil. Grethen Watkins will take up the role as CEO
of Maersk Oil effective October 1 2016.

Jørn Madsen has been appointed CEO of Maersk Drilling. Jørn Madsen
is currently CEO of Maersk Supply Service a role he has held since 2015. He
will assume his new position after a replacement is named as CEO of Maersk
Supply Service.

Christian M. Ingerslev has been appointed CEO of Maersk Tankers
taking effect as of November 1 2016. Christian has since 2014 been CCO of
Maersk Tankers.

The group said in June that it was considering splitting itself
into different companies, as it said the head of Maersk Line, Soren Skou, would
also become the group’s chief executive.

Maersk Line is currently facing a depressed shipping market that
is weighed down by overcapacity and sluggish global trade, while Maersk Oil has
had to cut staff as a result of falls in oil prices.

South Korea’s Hanjin, the world’s seventh-largest shipper, is
seeking bankruptcy protection at home and in the United States after creditors
refused to further help the firm.

Shares in Maersk were 0.76 percent higher in mid-morning trading
on the Copenhagen bourse, where the main index was 0.25 percent higher.